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The Board of Trustees of the Direxion Shares ETF Trust has decided to liquidate and close 12 ETFs (each a “Fund” and collectively the “Funds”) based on the recommendation of Rafferty Asset Management, LLC, the Trust’s advisor,.....

Due to the Funds’ inability to attract sufficient investment assets, Rafferty believes the Funds cannot continue to conduct their business and operations in an economically efficient manner. As a result, the Board determined that liquidating and closing the Funds would be in the best interest of each Fund and its shareholders.

Shares of each Fund will stop trading on the NYSE Arca, Inc., and will no longer be open to purchase by investors, after the close of regular trading on September 25, 2017 (“the Closing Date”). Shareholders may sell their holdings in each Fund prior to the Closing Date and customary brokerage charges may apply to these transactions. However, from September 26, 2017 through October 2, 2017 (the “Liquidation Date”), shareholders may only be able to sell their shares to certain broker-dealers and there is no assurance that there will be a market for each Fund’s shares during this time period.

Between the Closing Date and the Liquidation Date, each Fund will be in the process of closing down and liquidating its portfolio. This process will result in each Fund increasing its cash holdings and, as a consequence, not tracking its underlying index.

On or about the Liquidation Date, the Funds will liquidate their assets and distribute cash pro rata to all remaining shareholders who have not previously redeemed or exchanged their shares.

These distributions are taxable events. In addition, these payments to shareholders will include accrued capital gains and dividends, if any. As calculated on the Liquidation Date, each Fund’s net asset value will reflect the costs of closing the Fund. Once the distributions are complete, the Funds will terminate.